Global Crossing, Whampoa/STT end discussions

Global Crossing and the investment team of Hutchison Whampoa and Singapore Technologies Telemedia ended their discussions last week after finding themselves unable to finalize an agreement to bring the bankrupt long-haul carrier out of Chapter 11.

On January 28, Global Crossing announced that it had declared bankruptcy while at the same time trumpeting a letter of intent under which Whampoa and STT were to invest $750 million in the carrier in exchange for controlling interest.

The letter of intent, however, was never finalized, and Global Crossing continued to field inquiries from more than 60 other parties interested in acquiring all or part of the company.

With the deadline to finalize an agreement having passed last week, Whampoa and STT announced that they had ended their discussions with Global Crossing’s creditors. According to a press release from the companies, their “views on the transaction for Global Crossing differed from those of the banks and creditors.”

Even with the talks between the parties having ended, both sides are holding out for the possibility that Whampoa and STT will involve themselves in the asset sale sometime over the next few months

--Toby Weber, Staff Writer